Client retention

PREPARE YOURSELF FOR SUCCESS!©

YO U R G R O W T H D E P E N D S O N R E D U C I N G YO U R AT T R I T I O N R AT E !

To grow 15% this year, you need to first cover your attrition rate

Webster defines as a natural & gradual reduction

In business, Attrition is defined as a loss of customer, revenue & profit

Profit Risk Factor:

To acquire 20% new customers this year, you need to first cover your attrition rate

Your goal in reality becomes 35%

On average, financial institutions lose 15% of their clients each year

principles to customer retentionFOUR

Artwork by Hugh MacLeod

1. Recognize your top clientsand measure your brand loyalty

Your brand is not an asset

But the brand

is the true asset to the company

Make a difference & be different

Your clients want to generate loyalty

Understand the unique

characteristics of

your best clients

to help you better understand their needs and requirements

Engage customers with lifestyle events

Capitalize on data you have to better understand relationship profitability and engagement practices

A loyal customer is an advocate who actively

endorses or recommends your product

Do you know who are they?

Artwork by Hugh MacLeod

2. Be engaged & Cross-sellSuccessful cross-selling or upselling is tofocus your efforts on meeting thecustomer’s needs, rather than simplypushing more products & services

VOICE OF THE CUSTOMER

“Companies can identify needs that customers themselves may not recognize through empathic design.” (Harvard Business Review)

How can companies identify needs that customers themselves may not recognize?

Empathic design means to understand acustomers need thru observation. Watchingcustomers use products or services in theirown environment, in the context of normal,everyday routines.

It is necessary to both listen to what customers say they do and observe them in their natural environment to uncover their true behaviors & processes.

If you overload customers with too many cross-selling suggestions, you may lose the entire opportunity.

THE CUSTOMER

Understand their circumstances & needs

Be fair to their needs and not yours

Customers don’t care about policies, they want reasonableness

Never say “NO”

Did you know! Regular service/product bundles don’t work anymore!

Lifestyle Solution Bundling

It requires to imagine the client/consumer not as a target with a particular demographic profile, but as an individual with stresses, problems, needs & desires, some of which they might not be aware of

Listen to what your

are saying

about you online

Connect via social media &

strategize to

Listen and identify your

• Be engaged• Be interesting

• Be Authentic & Transparent• Be committed

3. Reaching out

Your marketing goal is not to attractbuyers, but to convert buyers intoloyalists, into enthusiasts and evangelists

Hi

Hello

yes

Integrate a Relationship Expansion Plan

Build several relationships with the client’s organization. Expand & deepen your existing relationship with key individuals who play different roles

TO INCREASE STICKINESS

Do this first by connecting to your client’s agenda and be agile in talking about their business issues – and then build trust in your ability to help address them

Acquisition vs. retention

This picture sums up the way we all do business!

4. Track & MonitorEverything must be tracked andmonitored to ensure a successfulrelationship with top tier clients

Monitor & track your current churn/attrition rate is.

Companies with higher retention rate grow faster. Knowing how many are defecting & why is the reflection of knowing how many are staying & why.

Customer Retent ion Equ ity

Keeping one existing customer is 5 to 7 times more profitable than attracting one new one.

Lifet ime Value

Monitor your CUSTOMER RETENTION EQUITY, which is defined as the total of the discounted lifetime value of all the firm’s customers

In other words, a firm is only as good as its customers think it will be the next time they will do business with that firm.

SHARE OF WALLET & POTENTIAL WALLET VALUE

Customer wallet is defined as the total amount this customer can spend in a specific product category. The share of wallet then is how much they spend with a particular seller.

By understanding the total wallet & share of wallet you can identify which customers are the most “loyal” & which customer have the greatest growth potential

Measure & monitor CUSTOMER TRUST

The most important factor in building trust is “Quality products & services.”

Trust is build through frequent interactions

How are you measuring customer trust? And when was the last time you mapped all your customer touch points & the frequency of interaction per touch point?

Track CUSTOMER LOYALTY

Behavior is more important than attitude. Customers show their loyalty by the direction of their feet.

Are your customers staying or defecting? Do they serve as advocates ? Do they proactively endorse your company?

What customer behavior can you measure to DEMONSTRATE the company is improving customer loyalty?

PREPARE YOURSELF FOR SUCCESS!©

Aris [email protected](800) 930-3130

An executive with more than 20 years of client management, consulting and operational experiencewhich helped establish long-term, successful partnership with major corporations. He is the author of“Courage to Change,” which aims to help readers improve both their professional and personal lives, andserves as a council member on the Council of Advisors for Gerson Lehrman Group, a global network ofexecutives who provide consultation to investment leaders. Aris is the managing partner at Social LinkEndeavor. Please contact our office for the complete presentation material or speaking engagements.